“As a result of the 737 MAX grounding, we delivered over 50 fewer 737 aircraft in the quarter than originally planned.
We also booked approximately $1 billion of additional costs due to the adjustment to the production rate to 42 a month,” Smith said.
The company’s CFO explained that the $1 billion in additional costs is due to the lower production rate, which is causing fixed expenses to be amortized over a longer period of time.
READ MORE: Remains of Ethiopian Airlines Victims Still Scattered Around Crash SiteTwo Boeing 737 MAX aircraft have crashed over the past six months — one in Indonesia in October 2018 and another in Ethiopia in March.
In the wake of the latest crash, aviation authorities and carriers around the world have either grounded all 737 MAX series aircraft or closed their airspace to them.